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If you are a salaried employee in India, filing your Income Tax Return (ITR) accurately and on time protects you from notices, keeps your loans and visas smooth, and helps you claim refunds of excess TDS. The process is largely online through the income tax portal, but choosing the correct ITR form and reconciling numbers with AIS/26AS makes all the difference.
This guide is written for salaried professionals in Bangalore and across India, covering the old vs new regime choice, deductions, documents and common mistakes.
Which ITR should a salaried employee file?
Most salaried employees with income up to ₹50 lakh and only one house property file ITR-1 (Sahaj). You must switch to ITR-2 if you have capital gains, more than one house property, foreign income or assets, or if you are a director in a company.
- ITR-1 — salary, one house property, other sources, total income up to ₹50 lakh
- ITR-2 — capital gains, multiple properties, RSU/ESOP, foreign assets
- ITR-3 — salary plus business or professional income
Documents and information to keep ready
- Form 16 from all employers during the year
- Form 26AS and Annual Information Statement (AIS) from the portal
- Bank statements for interest income
- Rent receipts and rent agreement (for HRA claim)
- Home loan interest and principal certificate
- Investment proofs — LIC, ELSS, PPF, NPS, tuition fees
- Capital gains statement from broker / mutual fund
Old regime vs new regime — which is better?
From FY 2023-24 onwards, the new tax regime is the default. It offers lower slab rates but disallows most deductions (80C, 80D, HRA, home loan interest on self-occupied property, LTA, etc.). The old regime allows all deductions but has higher rates.
As a rule of thumb, salaried employees with total deductions above roughly ₹3.5–4 lakh usually save more under the old regime. Below that, the new regime often wins. Compute both before choosing.
Common deductions under the old regime
- Section 80C — up to ₹1.5 lakh (PPF, ELSS, LIC, EPF, tuition fees, home loan principal)
- Section 80D — health insurance premium up to ₹25,000 (₹50,000 for senior citizens)
- Section 80CCD(1B) — additional ₹50,000 for NPS contribution
- Section 24(b) — home loan interest up to ₹2 lakh for self-occupied property
- HRA exemption based on rent paid, salary and city
- Standard deduction of ₹50,000 (available in both regimes)
Step-by-step filing process
- Login to incometax.gov.in with PAN and password
- Download and verify AIS and 26AS — check all salary, TDS, interest, dividend entries
- Select the correct ITR form and assessment year
- Pre-fill data from Form 16 and AIS, then verify and add missing income
- Claim eligible deductions and compute final tax / refund
- Pay any self-assessment tax due through challan 280
- Submit and e-verify within 30 days using Aadhaar OTP, net-banking or DSC
Mistakes that trigger income tax notices
- Not disclosing interest from savings and FDs shown in AIS
- Skipping capital gains from equity, mutual funds or crypto
- Claiming HRA without actual rent payment or false rent receipts
- Wrong bank account for refund — refund fails
- Missing e-verification — return treated as not filed
Frequently asked questions
What is the due date for salaried ITR filing?
For non-audit cases (most salaried individuals) the due date is 31st July of the assessment year. Belated returns can be filed by 31st December with late fee under section 234F.
Can I file ITR without Form 16?
Yes. Use salary slips, bank credit and 26AS to compute salary income. Employers must issue Form 16, but its absence does not stop you from filing.
Is e-verification mandatory?
Yes, within 30 days of filing. Otherwise the return is invalid and treated as not filed.
Talk to Anagha Solutions for practical, Bangalore-based professional support.